SLP Cash-Secured Put Strategy
SLP (Simulations Plus, Inc.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NASDAQ.
Simulations Plus, Inc. develops drug discovery and development software for modeling and simulation, and prediction of molecular properties utilizing artificial intelligence and machine learning based technology worldwide. It operates through four segments: Simulations Plus, Cognigen, DILIsym, and Lixoft. The company offers GastroPlus, which simulates the absorption and drug interaction of compounds administered to humans and animals; and DDDPlus and MembranePlus simulation products. It also provides products based on mechanistic and mathematical models, such as DILIsym, a quantitative systems pharmacology software; NAFLDsym; IPFsym; RENAsym; and MITOsym. In addition, the company provides Absorption, Distribution, Metabolism, Excretion, and Toxicity Predictor for chemistry-based computer program that takes molecular structures as inputs and predicts their properties; and MedChem Designer, as well as modeling and simulation products comprising MonolixSuite and PKPlus. Further, it provides population modeling and simulation contract research services; training and consulting services designed to accelerate pharmacometrics studies; and clinical-pharmacology-based consulting services in support of regulatory submissions.
SLP (Simulations Plus, Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $274.2M, a beta of 1.28 versus the broader market, a 52-week range of 11.09-34.01, average daily share volume of 338K, a public-listing history dating back to 1997, approximately 243 full-time employees. These structural characteristics shape how SLP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.28 places SLP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SLP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a cash-secured put on SLP?
A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike.
Current SLP snapshot
As of May 15, 2026, spot at $13.23, ATM IV 83.40%, IV rank 43.36%, expected move 23.91%. The cash-secured put on SLP below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this cash-secured put structure on SLP specifically: SLP IV at 83.40% is mid-range versus its 1-year history, so the credit collected on a SLP cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 23.91% (roughly $3.16 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SLP expiries trade a higher absolute premium for lower per-day decay. Position sizing on SLP should anchor to the underlying notional of $13.23 per share and to the trader's directional view on SLP stock.
SLP cash-secured put setup
The SLP cash-secured put below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With SLP near $13.23, the first option leg uses a $12.57 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SLP chain at a 34-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 SLP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $12.57 | N/A |
SLP cash-secured put risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
SLP cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on SLP. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
When traders use cash-secured put on SLP
Cash-secured puts on SLP earn premium while a trader waits to acquire SLP stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SLP.
SLP thesis for this cash-secured put
The market-implied 1-standard-deviation range for SLP extends from approximately $10.07 on the downside to $16.39 on the upside. A SLP cash-secured put lets a trader earn premium while waiting to acquire SLP at the strike price; the strategy is most attractive when the trader is comfortable holding the underlying at that level and IV is rich enough to compensate for the assignment risk. Current SLP IV rank near 43.36% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on SLP should anchor more to the directional view and the expected-move geometry. As a Healthcare name, SLP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SLP-specific events.
SLP cash-secured put positions are structurally neutral to slightly bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. SLP positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SLP alongside the broader basket even when SLP-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on SLP carry tail risk when realized volatility exceeds the implied move; review historical SLP earnings reactions and macro stress periods before sizing. Always rebuild the position from current SLP chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on SLP?
- A cash-secured put on SLP is the cash-secured put strategy applied to SLP (stock). The strategy is structurally neutral to slightly bullish: A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike. With SLP stock trading near $13.23, the strikes shown on this page are snapped to the nearest listed SLP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SLP cash-secured put max profit and max loss calculated?
- Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium. For the SLP cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 83.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SLP cash-secured put?
- The breakeven for the SLP cash-secured put priced on this page is no defined breakeven on the modeled curve at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current SLP market-implied 1-standard-deviation expected move is approximately 23.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a cash-secured put on SLP?
- Cash-secured puts on SLP earn premium while a trader waits to acquire SLP stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SLP.
- How does current SLP implied volatility affect this cash-secured put?
- SLP ATM IV is at 83.40% with IV rank near 43.36%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.